The People’s Bank of China (PBC) formulated the recently issued Fintech Development Plan (2022 to 2025) under the Outline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Development and the Long-Range Objectives through the Year 2035. The recent plan has set out guidelines on the fintech development in a new era and specified the overall plan, development goals, key tasks, and implementation measures for digital transformation of the financial sector. The plan covers incorporation of data into the entire process of financial services provision, adherence to the principles of pursuing development driven by digital technology, adoption of smart technologies, fostering of a green and low-carbon economy, and promotion of fairness and inclusiveness.
Through this plan, the aim is to drive fintech in China to advance from the initial stage of laying foundations to a new phase of full development, aiming at a giant leap in its overall level and core competitiveness by 2025. The plan requires all parties to enhance coordination and ramp up their efforts in the planning, implementation, monitoring, and evaluation of the following tasks and to ensure effective implementation of each task:
- Strengthen fintech governance, develop digital capabilities, and improve the financial technology ethics system featuring multi-party participation and collaborative governance, to build a digital ecosystem that promotes mutual progress
- Enhance data capability, promote orderly sharing, and comprehensive application of data on the premise of ensuring security and privacy, fully activate the potential of data as a factor of production, and effectively improve the quality and efficiency of financial services
- Build a green and highly available data center, set up a safe and broad financial network, and put in place an advanced and efficient computing power system to further consolidate the “digital base” for financial innovation and development
- Deepen the application of digital technology in the financial sector, improve the system and mechanism for application of scientific and technological achievements with equal emphasis on safety and efficiency, continue to develop the industrial ecology of open innovation and win-win cooperation, and smooth the “last mile” for the transformation of scientific and technological achievement
- Improve the system for safe and efficient fintech innovation; build an "operation middle platform" that integrates business, technology, and data; establish an intelligent risk control mechanism; and fully activate new momentum for digital operations
- Deepen the intelligent reengineering of financial services, build diversified and integrated service channels, and create a barrier-free service system to provide the people with more inclusive, green, and humanized digital financial services
- Speed up the all-round application of regulatory technology, strengthen the capacity building for digital regulation, implement look-through supervision over fintech innovation, and build a firewall for finance and technology to fend-off risks
- Cultivate fintech talent, refine relevant standards and rules, strengthen implementation of laws and regulations, and safeguard steady fintech development for the long run.
Keywords: Asia Pacific, China, Banking, Fintech, Regtech, Low-Carbon Economy, ESG, Open Banking, Digital Ecosystem, PBC
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